JSE-listed PPC has announced impressive financial results for the year ending March 31, showcasing significant improvements in key metrics such as margins, profitability, and cash generation, reaching levels not seen since the 2018 financial year. The company’s strategic turnaround plan, dubbed ‘Awaken the Giant,’ has successfully rebuilt its foundations and transformed its operational approach, leading to double-digit increases in earnings before interest, taxes, depreciation, and amortization (Ebitda) and free cash flow.
During the review period, Ebitda surged by 28% to R1.59 billion, while the Ebitda margin expanded by 3.8 percentage points to 16.1%. Free cash flow from continuing operations skyrocketed by 306% to R1.05 billion, up from R260 million the previous year. Earnings per share and headline earnings per share rose significantly, with earnings per share increasing from 6c to 32c and headline earnings per share from 19c to 40c.
Despite a 1.9% decline in group revenue to R9.87 billion, attributed to a 6.7% drop in Zimbabwe’s revenue, PPC’s South Africa and Botswana operations remained stable with a slight revenue increase. PPC’s CEO, Matias Cardarelli, noted that these results are remarkable given the lack of significant market growth.
The company has resumed ordinary dividend payments from its South African segment for the first time since 2016, declaring a dividend of 17.6c per share, up from 13.7c last year. Cardarelli emphasized that the year marked the beginning of PPC’s turnaround strategy, with substantial results achieved ahead of schedule.
Looking ahead, PPC is focused on sustainable growth and value creation, with plans to unlock additional value in the coming years. The company has signed a contract with Sinoma Overseas Development Company for a new R3 billion integrated cement plant in the Western Cape, expected to enhance efficiency and reduce environmental impact. Cardarelli stated that the benefits of this project will begin to materialize in the 2028 financial year, securing PPCs competitive position in the market.